Iglu & Umbrella Companies in Phuket: Work Legally Without Setting Up a Thai Company

Here's the situation a lot of expats in Phuket find themselves in: they're working remotely for foreign clients or a foreign employer, earning good money, and they want to be legal in Thailand. But setting up their own Thai company seems complex, expensive, and requires finding genuine Thai shareholders. And the LTR visa income requirements are too high for where they are right now.

Enter the employer-of-record model. Organisations like Iglu Thailand solve this problem cleanly: they act as your Thai employer, give you a work permit and Non-B visa sponsorship, handle the compliance, and you get on with your actual work. This guide explains exactly how it works and whether it's right for you.

What Is an Employer-of-Record (EoR) in Thailand?

An employer-of-record is a company that legally employs workers on behalf of another organisation or individual — handling all the employment administration (payroll, tax, social security, work permits) while the actual work is performed for a different client or employer.

In Thailand's context: you work for your own foreign clients or your foreign employer, but Iglu (or a similar EoR) is your official Thai employer. They pay you a Thai salary (based on the income you generate), withhold Thai income tax and social security contributions, and maintain your work permit.

It's a legitimate structure used by thousands of foreigners in Thailand. Iglu is the most established player specifically for Phuket and Chiang Mai, though there are other EoR providers operating nationally.

How the Iglu Model Works in Practice

The Flow of Money and Work

1. You work for your clients (wherever they are in the world)
2. Your clients pay your invoices — either to your foreign company or to Iglu depending on the structure
3. Iglu processes your Thai payroll, withholds income tax and social security
4. You receive your net salary in Thai baht to your Thai bank account
5. Iglu charges their service fee (typically monthly retainer)

What You Get from Iglu

• Work permit — a valid Thai work permit in your name, sponsored by Iglu's Thai company
• Non-B visa sponsorship — Iglu provides the employer letter and documentation for your Non-B visa application and annual renewals
• Social security — contributions to Thai social security (SSO) giving you access to public medical care, maternity support, and unemployment benefits at Thai rates
• Payroll & tax withholding — monthly payslips, personal income tax withheld at source, year-end PND.91 tax certificate
• Compliance support — 90-day reporting reminders, work permit renewals, annual Non-B extension document preparation

Iglu Costs: What Does It Actually Cost?

At ฿9,000–฿15,000/month, the Iglu model is significantly cheaper than setting up and running your own Thai company (which carries ฿18,000–฿60,000/year in accounting fees alone, plus setup costs). The trade-off is that Iglu's structure is best suited to individuals; it doesn't work for businesses with multiple local employees or complex Thai entity requirements.

The monthly fee is essentially a tax on legitimacy. Is it worth it? For most people, yes — the peace of mind, the work permit, and the social security cover at ฿9,000–฿15,000/month is reasonable, especially when your alternative is operating in a legal grey area that becomes increasingly uncomfortable as your Phuket life gets more established.

Iglu vs Thai Company vs Other Options

Who Is Iglu / EoR Right For?

Iglu works well for:

• Freelancers with steady clients — copywriters, designers, developers, marketers who bill regular clients internationally
• Remote employees of foreign companies — if your employer is overseas but you want to live in Phuket legally, Iglu is the cleanest path to legal status
• Consultants doing project work — variable income, doesn't justify a Thai company
• Online business operators — e-commerce, dropshippers, content creators who want legal status without Thai company complexity
• Anyone uncertain about long-term plans — if you're not sure how long you'll stay in Phuket, an EoR gives you legal status without the commitment of a Thai company

Iglu doesn't work well for:

• Businesses with multiple foreign employees (each needs their own EoR arrangement)
• Businesses that need a Thai entity for contracts, premises, or banking
• Anyone needing BOI promotion (BOI requires your own entity)
• Hospitality, retail, or physical businesses that interact with Thai customers and need a Thai company registration
• Very high earners where the tax withheld through EoR payroll is significantly more than optimal tax planning through a proper structure

Other EoR Providers in Thailand

Iglu is the most established and well-known in the Phuket/Chiang Mai market, but they're not the only option. Other providers operating in Thailand include Belco (now integrated into larger EoR providers), various boutique Thai accounting firms offering similar structures, and international PEO/EoR companies with Thai operations.

The choice between providers typically comes down to: service quality, responsiveness, whether they understand the specific nuances of your situation, and price. Iglu's Phuket-specific experience is a genuine advantage — they know Phuket Immigration, the Labour Department, and the local nuances that generic Bangkok-based providers sometimes miss.

Always get quotes from at least two providers and ask specifically about: work permit renewal process, 90-day reporting support, what happens if there's an issue at immigration, and what the exit process looks like if you leave Thailand.

Getting Started with Iglu: The Process

1. Contact Iglu (iglu.asia) and discuss your situation — income type, current visa status, timeline
2. Sign the service agreement and provide personal documents (passport, education certificates, background check)
3. Apply for Non-B visa — Iglu provides the employer letter and company documents; you go to the Thai consulate in Penang (or wherever you're applying)
4. Enter Thailand on Non-B
5. Work permit application — Iglu handles this at the Phuket Labour Department; takes 5–15 working days
6. Set up Thai bank account — you'll need this to receive your Thai salary from Iglu
7. Start working — invoice your clients, Iglu processes payroll monthly
8. Annual renewal — Iglu supports your Non-B extension at Phuket Immigration annually

The timeline from decision to having a work permit in hand is typically 4–8 weeks, depending on your current visa status and how quickly you can do the consulate run. See our Non-B visa guide for the consulate application process.